Wednesday, January 16, 2008

Reliance Power IPO has subscribed 10.52 times. Maximum bids are at Rs 450 per share, a higher end of band Rs 405-450. Public issue received bids for 2.4 billion shares as against 26 crore shares on offer and that bids worth of USD 27.5 billion (Rs 1.08 lakh crore).

The initial public offer of Reliance Power, ADAG group company, has opened for subscription today. The company is offering 26 crore equity shares through this issue in the price band of Rs 405-450 per share and raising nearly Rs 10530-11700 crore (USD 2.67- 2.97 billion).Net issue to the public is of 22.8 crore shares and will raise between Rs 9234 – 10260 crore from the public. Promoters have pumped in Rs 1440 crore yesterday at Rs 450 per share as against 3.2 crore shares.

The issue will close for subscription on January 18, 2008. Net issue would constitute 10.1% of post issue paid up capital of the company. Shares outstanding post issue would be 226 crore shares. Market cap of the company would be Rs 91530–Rs 101700 crore (USD 23.23 – 25.8 billion).

Power generation company has 13 projects, out of which 6 are under development now.

Company intends to use IPO money for part financing power subsidiaries, which are pursuing 13 power generation projects. Out of which, 11 projects are to developed by nine subsidiaries; one is being directly executed by Reliance Power and one project under subsidiary is yet to be transferred. Rest of the money will be used for general corporate purposes and to get benefit of listing.